Mirae Asset Launches World's First ASOX Tracking ETF
Mirae Asset Management is set to list the 'TIGER U.S. Philadelphia AI Semiconductor Nasdaq ETF' on the Korea Exchange on the 26th, targeting the AI semiconductor market. This ETF, co-developed with Nasdaq, is the world's first to track the 'U.S. AI Philadelphia Semiconductor Index (ASOX)', with a key focus on AI-related semiconductor companies like Nvidia, TSMC, and Broadcom. As part of its investment strategy, it emphasizes the significance of AI investment by centering around AI semiconductors and companies related to IP design and EDA.
The ASOX index is formulated to prioritize the AI value chain over traditional comprehensive semiconductor firms, comprising primarily fabless and foundry companies. The investment weight for Nvidia is the highest at 22.2%, while 53% is allocated to fabless companies and 19% to related equipment foundries. This aligns with the strategic response to the development in the AI industry.
In light of Samsung Electronics falling from the top in market capitalization and Nvidia rising to the number one spot, this strategy reflects evolving market trends. Backtests by Nasdaq indicate the ASOX index surged by 580% over five years, underscoring the importance of AI technology to semiconductors. This trend suggests continued growth potential in the AI semiconductor industry.
Notably, around 58% of domestically listed semiconductor and AI ETFs are currently under TIGER ETF's purview. Mirae Asset is planning to leverage this position to expand interest in AI semiconductors in the global market.
Samsung Asset Management's 'KODEX U.S. Dividend Dow Jones' ETF Surpasses 100 Billion Won in Retail Investor Net Purchase Within 100 Days
Samsung Asset Management's newly launched 'KODEX U.S. Dividend Dow Jones' ETF has achieved a net purchase of over 100 billion won from retail investors in just 100 days since its listing. This ETF invests in the top 100 U.S. stocks with a consistent 10-year dividend record. It stands out with its extremely low annual management fee of 0.0099%, making it the lowest in the domestic market, and its structure of providing dividends on a monthly basis offers investors frequent dividend opportunities.
The ETF restricts sector and individual stock weight to enhance stability against market volatility, aiming to achieve steady returns even in volatile conditions. This feature makes it an appealing investment option, particularly in a market prone to fluctuations triggered by tech stocks. By offering a balanced portfolio, it attracts attention from investors looking for stable asset allocation. The monthly dividend distribution further enhances its attractiveness to dividend-focused investors.
High Returns for US Stock-Based ETFs
ETFs based on US stocks, favored by Korean retail investors, are garnering attention due to their high returns this year. The KODEX MIGookSeohakAnt ETF has achieved a significant 73.2% rise since the beginning of the year, leading impressive performance figures, while the ACE US Stock Bestseller also climbed 66.6%, ranking among the top. The KODEX MIGookSeohakAnt ETF is composed of a portfolio reflecting the top 25 US companies, primarily investing in major tech stocks like Tesla, Nvidia, and Apple. In contrast, the ACE US Stock Bestseller selects ten stocks based on financial criteria, with high weights in Meta, Tesla, and Nvidia among its holdings.
With Donald Trump's re-election, interest in the US stock market is increasing, and this decoupling trend is expected to sustain the popularity of overseas investment products. Samsung Asset Management's 'KODEX MIGookSeohakAnt ETF' stands out for its noteworthy returns, supported by its strategic investment in major US businesses, some of which are held by the Korea Securities Depository.
Korea Exchange Announces New AI and Bio-Focused ETF Listings
The Korea Exchange announced the listing of five new ETFs from Mirae Asset, KB Asset Management, Shinhan Asset Management, NH-Amundi Asset Management, and Kyobo AXA Asset Management on the 26th. This listing provides investors new opportunities centered around themes like AI and the biotechnology industry.
Among the newly listed ETFs, 'RISE America AI Tech Active' is an active fund investing in 30 American companies related to artificial intelligence (AI). It positions itself as an attractive option for investors interested in the expected growth and development in the AI sector. Additionally, the 'TIGER Philadelphia AI Semiconductor NASDAQ' is a passive fund targeting the semiconductor industry's application of AI, suitable for investors anticipating long-term technological advancements and market expansion.
'HANARO Bio Korea Active' focuses on domestic biotech companies, tapping into the growing significance of the biotech industry and offering innovation opportunities to investors. Conversely, 'SOL CD Interest Rate & Money Market Active' targets short-term bonds and commercial papers, appealing to investors seeking stable returns. Lastly, 'Power Comprehensive Bond (AA- or Higher) Active' invests in government bonds with a credit rating of 'AA-' or higher, providing a relatively stable source of returns.
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